A company is preparing its cash budget. Its cash balance on January 1 is $290,000, and it has a minimum cash requirement of $340,000. The following data have been provided: January February March Cash receipts $1,061,200 $1,182,400 $1,091,700 Cash payments 984,500 1,210,000 1,075,000 The amount of the deficiency or excess cash (after considering the minimum cash balance required) for January is a(n) a.excess of $356,700 b.excess of $60,000 c.excess of $26,700 d.deficiency of $136,700
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
A company is preparing its
| January | February | March | |
| Cash receipts | $1,061,200 | $1,182,400 | $1,091,700 |
| Cash payments | 984,500 | 1,210,000 | 1,075,000 |
The amount of the deficiency or excess cash (after considering the minimum cash balance required) for January is a(n)
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